FAR 47.300—Scope of subpart.
Plain-English Summary
FAR 47.300 explains the scope of Subpart 47.3, which deals with transportation and traffic management considerations in the acquisition of supplies. In practical terms, it tells contracting personnel when the subpart’s policies and procedures apply, what kinds of contract terms are covered, and how to use the subpart when the contract type is not fixed-price. The section makes clear that the subpart’s terms and conditions are directly applicable to fixed-price contracts, while for other contract types—especially cost-reimbursement contracts where the contractor normally handles transportation and transportation costs are allowable—the contracting officer should use the subpart as guidance rather than as automatic mandatory language. It also identifies two specific uses of that guidance: shaping contract coverage of transportation and giving instructions to the contractor so the Government’s total transportation cost is minimized. The practical significance is that transportation planning is not just a logistics issue; it is a contract drafting and administration issue that can materially affect total acquisition cost, delivery performance, and allocation of responsibility between the Government and the contractor.
Key Rules
Applies to supply acquisitions
This subpart governs transportation and traffic management considerations in the acquisition of supplies. It is intended to ensure transportation issues are addressed as part of the procurement process, not left to chance after award.
Directly applicable to fixed-price contracts
The terms and conditions in this subpart apply to fixed-price contracts. For those contracts, the contracting officer should incorporate and follow the subpart’s requirements as written.
Use as guidance for other contract types
For contract types other than fixed-price, the subpart is not automatically controlling unless a special requirement exists. Instead, the contracting officer should use it as a guide when transportation arrangements are normally the contractor’s responsibility and transportation costs are allowable.
Guide contract coverage of transportation
When a special requirement exists for other contract types, the contracting officer should use the subpart to determine how transportation responsibilities and related terms should be covered in the contract.
Minimize total transportation cost
The contracting officer should also use the subpart to instruct the contractor in ways that reduce the Government’s ultimate transportation costs. The focus is on total cost to the Government, not just the contractor’s immediate shipping choice.
Responsibilities
Contracting Officer
Determine whether the subpart applies directly or serves only as guidance based on the contract type. When a special requirement exists for a non-fixed-price contract, use the subpart to draft transportation coverage and provide instructions aimed at minimizing the Government’s total transportation costs.
Contractor
For contract types where transportation arrangements are normally the contractor’s responsibility, follow the contract’s transportation instructions and manage shipping in a way that supports the Government’s cost-minimization objectives.
Agency/Acquisition Team
Identify transportation and traffic management needs early in the acquisition so the solicitation and contract clearly address responsibility, coverage, and cost implications.
Practical Implications
For fixed-price supply contracts, transportation terms from this subpart should be treated as part of the contract framework, so omission or misapplication can create avoidable disputes.
For cost-reimbursement and similar contracts, the section does not automatically shift transportation responsibility to the Government; instead, it signals that the contracting officer must think carefully about how transportation is covered and directed.
A common pitfall is assuming that because transportation costs are allowable, the contractor has complete discretion without Government direction; this section supports using instructions to control total cost.
Another risk is failing to distinguish between contract coverage of transportation and operational shipping decisions; both need to be addressed if the Government wants cost-effective outcomes.
This section is a reminder to coordinate acquisition, logistics, and contract drafting early, because transportation choices can affect price, reimbursement, delivery timing, and overall program cost.
Official Regulatory Text
(a) This subpart prescribes policies and procedures for the application of transportation and traffic management considerations in the acquisition of supplies. The terms and conditions contained in this subpart are applicable to fixed-price contracts. (b) If a special requirement exists for application of any of these terms and conditions to other types of contracts; e.g., cost-reimbursement contracts, for which transportation arrangements are normally the responsibility of the contractor and transportation costs are allowable, the contracting officer shall use the terms and conditions prescribed in this subpart as a guide for- (1) Contract coverage of transportation; and (2) Instructions to the contractor to minimize the ultimate transportation costs to the Government.